The government announces a pre-generation plan this week … Review of the expansion of rental housing and support for monthly rent

▲ Photo of real estate material ⓒ Kwon Chang-hoe

The government will announce measures to stabilize the cheonsei market next week. This is a measure that takes into account public opinion aggravated by the intensification of the jeonse crisis. This is the 24th revision of the policy.

Regarding related measures, the expansion of public rental housing and support for monthly rent are being considered.

According to the relevant ministries, on the 26th, the government will present measures to stabilize the cheonsei market next week. The Ministry of Lands, Infrastructure and Transport and the Ministry of Strategy and Finance are discussing measures to prepare measures.

Together with the ruling Democratic Party, mindful of public opinion related to the recent jeonse crisis, it has been too early to announce the launch of the ‘Future Housing Promotion Team’.

The government is expected to take the lead in much of this measure, even after consultations with the party government. However, there are concerns that, in the current situation, the solutions the party can offer will be very limited.

Earlier, Vice Premier Hong Nam-ki and the Minister of Equipment and Materials said, “I have reviewed all the plans of the previous generation for the past 10 years.”

The government plans to propose countermeasures for the cheonsei in a way that does not contradict the policy to stabilize the commercial market. There is no change in the direction of existing policies, such as the Three Leases Act.

Key measures are being reviewed, such as expanding the supply of public rental housing, such as jeonse lease, and shortening the supply schedule. Tax incentives, such as the expansion of the monthly rental tax credits mentioned by the Minister of Land, Infrastructure and Transportation, Kim Hyun-mi, are also subject to consideration.

Recently, in the housing market, there has been a “jeonse crisis”, such as a shortage of jeonse sales and a sharp rise in prices.

The price of jeonse is low and the national average price has risen for 12 consecutive months. Prices have risen even more since the end of July, when the new leasing law went into effect.

According to the Korea Appraisal Board, the third week of this month, the rental price of apartments across the country increased 0.21% from the previous week. These are the first five years and six months since the third week of April 2015 (0.23%), which recorded the highest price just before.